Are you on the hunt for the best way to send money to India from UK?
In this post, that’s EXACTLY what I am going to show you – best money transfer to India from UK that gets you the best rate for GBP to INR.
I’ve included the best options money transfer options out there – including money transfer fees, best sign-up deals and tips that can help you get the best exchange rates.
Let’s dive right in.
- Sending money to India from UK with Banks
- Best way to send money from UK to India – Alternatives?
- Best ways to transfer money from UK to India
- Send money to India from UK – Summary
Sending money to India from UK with Banks
You’ll agree with me when I say:
One of the main reasons you moved to the UK is better remuneration on jobs compared to similar roles in India.
You have worked hard, staying away from your family to support them and to give them a better life.
With the hard-earned salary that you earn, you send money to family members in India to support them financially.
If you don’t get the optimum value for your hard-earned money due to greedy intermediaries (banks!), you might be losing lakhs of rupees over the years on your UK to India money transfer.
Whether you want to buy a house in India, send money to support your family, or simply save for retirement, using traditional ways of transferring money to India and sticking to a single company/bank, you could be losing a lot!
Well, I did!
When you send money to India from overseas using your bank, banks charge hidden fees.
You might ask:
How can the banks charge more for money transfer to India when the advert says “Zero Fee Transfer.”
The truth about “Zero Fee Transfers.”
Banks charge you hidden fees for your international payments even though the advert might flaunt “Fee Free Transfers.”
It’s just that you don’t realise you are getting stung.
You act lazy to walk away from your trusted bank. That’s because the banks advertise it as ‘Zero fee transfer’ and you end up believing the marketing gimmick.
But the reality is:
Banks aren’t usually your best option when converting currency!
In my detailed guide on sending money to India, I already told you that sending money using your bank without doing any research is not a superb idea.
(If you haven’t read my comprehensive guide about India remittance, now is an excellent time to do it! Here’s the link.)
Disclaimer: This article includes affiliate links that might provide a commission to me at no extra cost to you, if you use my links to signup and transfer money. However, these are the best ways to transfer money from UK to India (GBP to INR) that I found effective in 2020. For more information, you can read my affiliate disclosure.
Best way to send money from UK to India – Alternatives?
I have been in the UK for a while now.
Getting the best exchange rates deals requires a bit of research!
During my quest for the most reliable money transfer option, I experimented a lot.
I transferred GBP to INR using many different companies/banks (big and small!) that offer money transfer services to India from the UK.
If done right, it can save you a lot in conversion rates and fees.
But you have to stay with me:
In a sudden stroke of serendipity, I came across great bank alternatives that offer great service and still much cheaper to transfer money from UK to Indian bank account.
These disruptive companies convert your Pounds at mid-market rates and are much better off for Rupee per GBP converted, compared to conventional banks.
It took me many years to realise the issue in sending money via my bank.
Looking back at the amount of money I transferred through the currency exchange service offered by my bank, the math runs into mind-boggling figures (more about that in a different post, maybe!)
I wonder how much I could have saved by not sticking with my bank!
Banks often hide their costs in the exchange rate they offer. Any particular reason I chose to stay with them? I don’t know!
Maybe I was too scared to try any other company and risk my money transfer?
Or, perhaps I was just too lazy (ask my wife about that!) to shop around! Or, a mix of both!
What if they take payment from me in the UK and don’t transfer it to my Indian NRO/NRE account? What if they go bust? And a hundred other thoughts which don’t make sense at all to me today, having tried the alternatives of transferring money from the UK to India.
Now, 3-4 years after I tried these companies, I laugh at the scared-lazy-me from the past. And feel so happy to have made the switch. If the above personal experience of mine doesn’t motivate you to make the switch, nothing else can!
What’s the big secret I am talking about?
I wanted to bring to you some of the best money transfer alternatives to banks – convenient, low-cost alternatives that allow you to transfer money from the UK to India along with features they offer and the associated fees.
I will keep this article updated at all times to come, so I insist you bookmark this page as your go-to guide for transferring money to India from the UK.
Best ways to transfer money from UK to India
To understand the best ways to transfer money to India, let’s quickly look at what might NOT be the best way to do it!
A recent study of six of the leading UK’s banks charging fees on overseas transfer by small firms in the UK showed that up to 96% of transfer revenue came NOT from overseas money transfer fees advertised by these banks but from exchange rates.
Read that last bit again!
A similar markup is added to your transactions and banks never pay you at the mid-market rate. An advertised Fee Free Transfer is not really FREE.
So, avoid banks when transferring money overseas to India without shopping around!
Before each transfer, I shop around to see which service is providing the best conversion rates and look at the calculations, fees, etc. and finally, choose the winner.
I do this on almost every single money transfer that I do now.
Now without further ado, let me show you how to transfer money from UK to India at competitive rates, to help you choose the best money transfer to India from UK.
Sending money to India online is pretty easy – you sign up with the money transfer company you like, add your recipient details, pay them in local currency (GBP) and submit your request.
In many cases, you’ll be required to submit a few documents for verification purposes. Below, I have covered some of my favourites that I have used recently and can recommend.
On top of my list is, TransferWise!
In my quest for the best money transfer to India from the UK, Transferwise was the first service I moved off to quite permanently when I finally broke up with my bank for moving my monthly salary from the UK to India.
My family is back in India and I have been using TransferWise personally for many years now.
Launched in Jan 2011 by people who built Skype and Paypal, TransferWise uses smart peer-to-peer tech, which enables them to offer real mid-market rates which you see on Google or XE.com. (Useful: How does TransferWise work?)
As I mentioned, I still shop around a bit to ensure that I still get the best exchange rate to transfer money from UK to India, but Transferwise is almost every time the first site I check.
There are a few things that I love about Transferwise.
The first is the transparency of conversion rate that is going to be applied and the transparent fees structure. Upfront guaranteed rate and fees remove the uncertainty that banks take advantage of and pay you less.
Another thing is how quickly the money gets delivered to your Indian bank account after you pay TransferWise in the UK.
Taking an average of the number of times I used Transferwise for money transfer to India, it used to take 1-2 working days to arrive in my recipient’s Indian bank account. However, most of the times it was credited the next morning.
With advancements over the years, my GBP transfers to India (INR) using TransferWise take under a minute to arrive (and in most cases under 30 seconds) after sending funds to TransferWise account.
Of course, sending over a weekend or on a holiday would add a lag so if you time your transfer to be during Indian banking hours, I’ve experienced them to be instant – if under-a-minute counts as an instant transfer that is – I think it qualifies. 😉
The reason for the quick remittance is: TransferWise delivers money locally, and your recipient gets Indian Rupees directly from Transferwise’s Indian bank account.
And, it transfers at the mid-market rate which has always been more than the banks.
You can use this link to make your first transfer to India.
How to send money to India from the UK with Transferwise?
Transferring money to India with TransferWise from the UK is pretty simple and can be done in 3 easy steps.
- Place the request with Transferwise with the mid-market rate offered. Use my link to avail the quick transfer with great rates today. Follow the link for more details on TransferWise offer for 2020.
- Enter recipient details – you need to do this only for the first time. Next time, you can use the saved details if you want to use the same recipient.
- Transfer pounds from your UK bank account to Transferwise bank account in the UK (details provided in Step 1 above). You can pay in £s using your UK debit card, credit card or money transfer using net banking.
- Transferwise converts UK Pounds to Indian Rupees at the decided rate, and your recipient gets paid the amount in Indian Rupees from TW’s bank account in India.
Fees: To send money from GBP to INR, TransferWise charges a fixed fee of £0.29 + 0.45% of the transferred amount, but if you take this into account and compare it to the amount which your bank gives you, overall Transferwise is a winner.
Bonus Tip: If you are still unsure about how better the TransferWise rate is, compare the money offered by your bank using this TransferWise calculator now.
On my lookout for the cost-effective way to transfer money from UK to India, Xendpay is the another entry to my list.
It has become one of my favourites – majorly for the reason that they offer a ‘Pay What You Want‘ option initially which means you can pay whatever fee you want for the money transfer.
In addition to this, Xendpay offers very competitive rates on the market which many times beats Transferwise as well making Xendpay another cheap way of sending funds to India from UK.
And, who doesn’t want extra per every British Pound?
A few things which I liked about Xendpay:
Transparency in conversion rate, transfer costs and cheap fee (Zero initially under ‘Pay What You Want’ model – Xendpay allows you to enter ‘0’ (impressive!), but I suggest you pay some amount for Xendpay to keep providing this great offer!)
Transfer from the UK to India on average took 2-3 working days (most of the times it arrived in my Indian bank account on the 2nd business day).
Verification process to extend your transfer limits is easy – just upload two documents, one for address and one for identity proof and it for me, got verified on the same day.
Bonus Tip: Take advantage of Xendpay promo code and get £10 off whenever you transfer your first $100 (approx. £70). If you transfer your first £70, you will pay only £60 from your bank account – a flat discount of 14%. This means an extra Rs. 1000 in your account on your first transfer with Xendpay.
Banks never give such offers!
How to transfer money to India from UK with Xendpay?
Transferring money to India using Xendpay is quite straight-forward. Just like shopping on Amazon!
- Create an account on Xendpay and login to your profile.
- Look out for ‘Send Money’ tile on the Dashboard. That takes you to Currency Calculator where you can enter the amount of GB Pounds you want to convert to Indian Rupees.
- When you use Xendpay for the first time, it will allow you to transfer only £900. If you want this limit removed, you can upload your identity and address proof documents to get your account verified.
- Enter recipient details – you need to enter these only for the first time, and you can re-use them for future transfers.
- Next, review the details and make a payment using one of the payment methods presented. Use bank transfer or debit card instead of a credit card to avoid any additional charges. Confirm your request!
Remember: If you use my link to sign up, you will get £10 off your first transfer (find more details about Xendpay offer here). So, if you use the full limit for an unverified account, you will only pay £890 to transfer £900 to India.
WorldRemit is a relatively new addition to my arsenal of services that provide a cost-effective solution for transferring money to India from the UK. Given that WorldRemit charges a flat low transfer fee of £1.99, it makes sense to send money using WR if you are moving large amounts.
Check WorldRemit promo page to see how you can bring the fees down to £0.
Unlike with other companies on this list for which the fee increases as you increase GBP amount, WorldRemit has a cheap fixed-fee tariff, and you end up getting better overall exchange rates for more significant amounts.
How to transfer money from UK to India with WorldRemit?
Initiating money transfer from UK to India using WorldRemit is similar to other services on this list. For your convenience, I have briefly mentioned the step-by-step procedure.
- Register at WorldRemit.com and login to your profile.
- Select the country of remit and add recipient details.
- Raise a money transfer request and send money to WorldRemit account. It will then be transferred to your recipient’s account in India in 1-2 working days.
Fees: WorldRemit charges a flat £1.99 fee for any amount you remit. It saves some serious moolah if you are sending a large amount. You can use WorldRemit promo code and pay £0 fees on your first 3 transfers.
The few things I liked about WorldRemit: Guaranteed exchange rates, low £1.99 fees displayed upfront (and £0 fee for your first three transfers using the promo discount I gave you!).
Bonus Tip: Use WorldRemit if you need to transfer a larger amount (over £3000) – the £1.99 cost is justified as you increase the amount you send to India.
Comparing the options on this post, you can start with Xendpay to get the £10 off on your first transfer before you use WorldRemit. This way, you cut down on the cost you would otherwise pay towards transfer fees.
Send money to India from UK – Summary
So there you have it – a list of cost-effective best ways to send money to India from UK in 2020.
You can contact me in the comments section below if you face any issues when sending money to India with Transferwise, Xendpay, WorldRemit or any other service.
I plan to explore a lot more services that offer money transfer to India and also grab some fresh deals for you.
Do sign up for my free newsletter, so you don’t miss any of my future posts.
I hope this post gives you a better understanding of why remitting funds to India via banks might not be the smartest idea.
You now know about cost-effective, smart and cheaper alternatives to banks to help you make better decision for your next UK to India money transfers.
How do you send money to India? I am interested to know which currency exchange service works best for you for your remittances to India?
If you found this post useful, please do share it with your friends, family members and colleagues on Facebook, Twitter and Whatsapp.
I would appreciate if you could help me spread the word about Comparism.
So why not make a start today by sharing this post and tagging Comparism? 😉